- Bitcoin is consolidating at the 50-week SMA.
- The longer BTC maintains that market cap level would signal a stronger breakout.
- For the past six months, some form of consolidation precedes power price moves.
Bitcoin is still in also a consolidation phase, characterized by behavior that one would typically see just before an explosive move in one direction or the other. It is currently trading at around $77,259, with movement restricted to a well-established range. After this consolidation comes the groundwork for major bursts. Statistically, every previous time that Bitcoin has seen similar types of consolidation, price generally went up significantly thereafter with strong chart patterns forming. The 50-week SMA and EMA give really good support at this time, implying that Bitcoin pricing is preparing for its next big move.
🚨There are always signs before a big market move! Strong consolidation and pattern formations often precede explosive price action. Right now, we’re still consolidating.
Last year, it took approx. six months to form a bull flag before $BTC surged 60%+. With #Bitcoin now at a… pic.twitter.com/Gym6AQvZuq
— Anup Dhungana (@CryptoAnup) March 22, 2025
Are the Conditions There for a Repeat of 2022?
Last year, a substantial amphitheater very much swarmed this path out for Bitcoin. About six months of consolidation from the last important upward movement to much rising profits of over 60% could certainly be charged.
Outspreading almost an identical form; allowing a chance, on the contrary, market capitalization for Bitcoin has really substantial input now. Being there is a good solid market capitalization of $1.66 trillion: Being fairly liquid, Bitcoin now has some capital and many market players: thus, it requires more time and effort now to effect some big price change than it did at below the $100 billion level from 2018 to 2020.
That market-cap level implies that Bitcoin may require a period of time to breakout properly from consolidation. With greater amounts of capital going into the asset, larger price movements will be demanding and prolonged consolidation will be needed. This changing face of the market has little bearing on the asset’s fundamentals. The price between $75,000 and $77,000 signals that accumulators are waiting for a breakout.
Technical Indicators in Line with History
The technical picture mirrors the potential for a Bitcoin breakout. A distinct bullish flag is forming, whereas the technicals would traditionally lead to an acceleration in upward pricing action. The close-following 50-week simple and exponential moving average act as strong confirmation for this bullish sentiment. These indicators act as strong support levels to hold unless there is a major change in investor sentiment.
The charts also suggest that Bitcoin recently tested the lower bounds of its range and was firmly rejected right afterward, confirming that there are solid buyers at those levels, which is ordinarily a sign of strength. While this consolidation continues in the meantime, it likely looks to Elliot-wavers a small triangle that they favor, with breakout potential most probably towards the week’s end.